Appoint a Nominee Director
Don’t have a director that resides in Malaysia?
For non-resident foreigners interested in establishing and managing a business in Malaysia, there is a legal restriction.
However, as you navigate through the process of finding a suitable local partner, we offer the option to appoint a qualified nominee local director for your Malaysian company.
This service is a temporary solution designed to ease the challenge of securing a reliable local partner when you might not have established local connections before entering the Malaysian market.
Once you’ve identified and finalized arrangements with your chosen local partner, we seamlessly transition the directorship to them.
Due to the liability and non-executive nature of our nominee director service, the service is subject to the following non-exhaustive terms and conditions:
- Pass our Know Your Customer (KYC) compliance check.
- Take up of our company secretarial, accounting and tax services.
- Appointment of at least one (1) additional director (may be a foreigner) to act as an executive director.
- Submit a copy of the monthly bank statement to our nominee director for review.
- Provide a refundable security deposit starting from RM5,000.
The deposit may increase if your company turnover is higher than RM500,000 per year, has high share capital, high external debt, runs a regulated business, or hires many local and foreign staff in Malaysia. - You are not a citizen of, nor do you do business with customers from, the countries listed under the US Sanctions list
Frequently Asked Questions
Is it legal to appoint a nominee director?
Certainly, while designating a nominee director is within the legal bounds of Malaysian regulations, it is highly advisable to engage in formal agreements with your nominee director.
This precautionary step is crucial to ensure the protection of both parties' interests and rights.
Creating such agreements serves as a proactive measure to establish clarity and prevent potential misunderstandings in the course of the business relationship.
What are the powers and roles of a nominee director?
A nominee director is typically designated to meet statutory compliance obligations.
Their authority is constrained; they are not authorised to oversee the daily financial or operational aspects of your business, act as a bank signatory, or sign invoices, contracts, or legal documents on behalf of your business.
In simpler terms, their role is limited to fulfilling legal requirements rather than actively participating in the operational aspects of the business.
What are the liabilities of a nominee director?
Every director, including the nominee director, bears legal responsibility and accountability for ensuring legal compliance.
In situations where the foreign director is inaccessible, the nominee director assumes the responsibility.
This is why our nominee director takes on significant potential risks, necessitating a deposit to safeguard their interests and mitigate potential liabilities.
In simpler terms, the deposit serves as a measure to protect the nominee director in case they need to step in due to the unavailability of the foreign director.
Can I terminate the nominee director at any time?
Certainly, you have the flexibility to terminate our nominee director service whenever you choose.
Simply furnish us with the details of your alternate local resident director, and we will take care of the paperwork, submit the necessary changes to the authorities, and promptly return the security deposit to you.
In other words, the process is straightforward and allows you to seamlessly transition to your preferred local resident director.
The whole process will be taken as below:
Get Your Nominee Director with Our Help
1st
Talk with you to understand the situation and we will list the potential nominees that is suitable to your needs.
2nd
You may select the suitable nominee that you wish to appoint.
3rd
The board has to draft a resolution to vote that this person become a director of the Company.
4th
After the resolution is passed, we will prepare and submit the necessary paperwork to the relevant authorities.
5th
In order to mitigate the risk of your company and your shareholding from being misued by the nominee, we will prepare a Nominee Director’s agreement and a Deed of Indemnity for the candidate for signing.
The whole process will be taken as below:
Get Your Nominee Director with Our Help
1st
Talk with you to understand the situation and we will list the potential nominees that is suitable to your needs.
2nd
You may select the suitable nominee that you wish to appoint.
3rd
The board has to draft a resolution to vote that this person become a director of the Company.
4th
After the resolution is passed, we will prepare and submit the necessary paperwork to the relevant authorities.
5th
In order to mitigate the risk of your company and your shareholding from being misued by the nominee, we will prepare a Nominee Director’s agreement and a Deed of Indemnity for the candidate for signing.
How is pricing determined for this service?
As nominee director or shareholder, the candidate is mostly called in as and when needed. Therefore, the fees chargeable are broken down in terms of what the nominee is asked to do.
- for engaging each nominee director or shareholder, or as both;
- for each set of documents that a nominee is called in to sign and approve;
- for each time a nominee is called to help open a bank account for your company;
- for the time that a nominee spent attending a meeting or representing your company; and
- courier charges.
The benefits of our service that you gain will outweigh the cost of engaging us. This is so because our pool of nominees are thoroughly screened and are trustworthy in character. Furthermore, we also take steps to ensure that legal means such as Nominee Director Agreement are executed and enforced in order to protect your interest. Lastly, our fees are a broken down into separate services that you may choose to include or leave out. Therefore, you may manage your spending to the point that you’re comfortable with.
For exact figures of applicable fees, please book an appointment with our representative to speak about the services that you require.